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ARTICLE · 05 JUNE 2023

Dilapidations – How Are Damages Assessed?

Most commercial leases include obligations in relation to repair, decoration and yielding up at the end of the lease.

United KingdomReal Estate and Construction

Most commercial leases include obligations in relation to repair, decoration and yielding up at the end of the lease.

Where a tenant is in breach of those obligations, the landlord will seek to bring a claim against the tenant for the losses which it suffers as a result of those breaches.

However, the assessment of those damages is often complicated, particularly where a landlord has planned significant changes to the property.

In today's market, such changes are becoming increasingly common, as landlords are required to adapt work and retail spaces for changing tenants' needs.

In this property litigation blog, we look at the common law assessment of damages and the limitations on landlords' claims imposed by statute.

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